Los Angeles daily herald., 1887-03-24
Let well Enough Alone.


Let Well Enough Alone.
The Washington Republican de-
plores the financial condition of the
,ountry in the following dolorous
strains: s'If the late Secretary OF the
Treasury, Mr.. Manning, was accurate
Ia his estimates, and It is to'be pre-
Dumed that he was, there will be paid
into the treasury during the next fiscal
year an average of ten million dollars
zach month, more than can be dis
bursed under any existing law. There
can be no bond calls during that year
because by the first of July all the
bonds that are due will be paid, and
the result will be that an enormous
sum of money will in few months
be withdrawn from circulation.
Any one who has the slightest
of the finarces and needs
of the country cannot help seeing that
this withdrawal of money from active
use will result in very great hardships
and almost certainly produce finan-
cial panic, carrying widespread ruin.
The report of the comptroller OF the
currency shows that the circulating
medium of the country, including
gold, silver, legal tender and bank
notes, gold and silver certificates,
amounts in round numbers to abou
eighteen hundred million dollars,
which would indicate thirty dollars
per capita, asum too small to transact
the business of the country.
"But these figures do not indicate
the circulating medium, for the re-
serves must be deducted before we
can determine the actual amount OF
money in use. The coin held in the
treasury as a reserve fund, the gold
and silver held in the treasury repre-.
eenting outstanding certificates, the
national bank reserves, the legal ten
der notes held to redeem national
bank notes, and the national bank
notes held for the same purpose, all
taken together, amount to one-half
the sum mentioned, and reduce the
actual circulating medium to 5000,
600. 600, or only $15 per CAPITA.
ENGLAND has $2S and France $40
psr capita circulation. In this coun
try large sums, amounting perhaps
to ten per cent. of the currency, are
continually Withdrawn from circula-
tion by being in transmission from
one section to another, so that in
reality our per capita allowance is
less than half that of England, and
only one-third that OF France"
1t probably never occurred to the
writer of the above article that the
currency OF the United States will be
increased this year by the re-colnage
of &, ,OOO, 900 of the trade dollars into
standard dollars for circulation. Then
there will be the coinage OF - 300, 900
monthly of the standard silver dollar,
making an increase OF 1927 100000 in
circulation in 1857. Besides, the pay
ment of the SIS, 100000 OF govern
ment bonds will add to the currency
of the country. A portion Of these
bonds are held by corporations, es-
tates, private bankers and individu-
ais, and the rest by national banks.
All bonds owned by any party except
national banks, will, when paid, in
crease the circulation for their full
face value, while those paid to ma
tional banks will add ten per cent. to
the circulation of such institutions.
tits quite likely that half OF the $780,
600 600 three per cents is held by 9TH
ers than national banks and the pay
ment of these will add $35, 100000 to
the circulating medium OF the country
which added to ten per cent. on
the hank balance will make 1884,
600, 600 by the payment OF these
bonds. These operations OF the
United States Treasury will show an
increase of $67, 900, 900 in the circulat-
ing Medium while there is left the
probable addition of large amount
Of money from Europe to pay for
grain, cotton and tobacco. The dis
bursements of the government for
and other purposes will be
and new national banks
are steadily organizing and placing
ninety per cent. of their capital IN
With these facts in sight
Il appears that such jeremiads as
those doled out by the Washington
are groundless and USE
less. The country is prospering as
no great country ever prospered be-
lore, and there seems to be no neces-
uity of change Of policy in finance
until there is injury being wrought by
he present system. The epitaph Of
he italian philosopher, written by
himself ard afterwards chiseled in
bis tombstone is suggestive. In that
hs aaid:
II wss we'll and wanted to be better;
J took med1etne and here am